Complete guide to permits and licenses required to start a barber / cosmetology in Aurora, IL. Fees, renewal cycles, and agency contacts.
Required for all LLCs. Annual report also required separately.
Applies to all LLCs; filed online via CyberDriveIllinois.
Must publish in newspaper for 3 weeks in each county of operation; renew every 10 years.
500 hours education or 3 years experience + exam; separate from practitioner license.
Prerequisites: 1500 hours approved education or apprenticeship + passing exam (INCOME, laws/rules, practical).
1500 hours education + exams; barber/cosmetology shops often require staff to hold appropriate license.
Must have licensed managing barber; inspections required. Apply after LLC formation.
Requires licensed managing cosmetologist; separate from barber shop if offering full services.
All employers in Illinois must register with IDES and pay unemployment insurance tax. Rate varies by experience rating; new employers pay 3.5% on first $14,000 of each employee's wages (as of 2024).
All LLCs in Illinois are subject to the Replacement Tax: $25 minimum per year on first $100,000 of income, plus 0.1% on income above $100,000 up to $1 million, and 1.5% on income above $1 million. Also subject to 2.99% corporate-level income tax if electing corporate taxation. Most pass-through LLCs pay via owners' personal returns but still must file Form IL-1065 and pay replacement tax.
Must hold active barber license + 1 year experience or equivalent.
Active cosmetologist license + 2 years experience required.
Barber and cosmetology services are generally exempt from sales tax in Illinois. However, retail sales of cosmetic products (e.g., shampoos, conditioners) are subject to sales tax. A Seller's Permit is required to collect and remit tax on such sales. See 35 ILCS 120 and Illinois Department of Revenue guidance.
Required for all Illinois employers to withhold state income tax from employee wages. Applies regardless of business type. Must register via MyTax Illinois.
Required under Illinois Vehicle Code (625 ILCS 5/7-100 et seq.) for any vehicle titled or used for business. Personal auto policies do not cover commercial use. Applies if the business owns or regularly uses a vehicle for transporting equipment, clients, or staff. Enforced by the Illinois Secretary of State and local law enforcement.
Not mandated by Illinois law. However, if the business sells retail hair or skincare products (e.g., shampoos, pomades), product liability exposure increases. While not required, it is strongly recommended. Claims could arise from allergic reactions or defective products. Regulated indirectly through tort law and enforced via civil litigation.
Only required if the barber shop holds a liquor license and serves alcohol. Most barbershops do not serve alcohol, so this is not typical. If applicable, the ILCC requires proof of liquor liability insurance as part of license compliance. Not a standard requirement for cosmetology businesses.
Duplicate of 'Surety Bond (License Bond)' but confirmed via IDFPR application form. A $10,000 surety bond is required for all cosmetology establishments, including barbershops, under 225 ILCS 115/10. The bond ensures compliance with state regulations and provides recourse for consumer complaints. Must be submitted with initial application and renewed with license (every 2 years).
Single-member LLCs with no employees may use the owner's SSN, but obtaining an EIN is recommended for banking and liability protection. Required for all LLCs with employees or those electing corporate taxation.
LLCs are pass-through entities unless elected otherwise. Single-member LLCs report income on Schedule C (Form 1040); multi-member file Form 1065. Barber income is subject to self-employment tax.
Barber shops must comply with OSHA’s General Duty Clause requiring a safe workplace. Specific risks include exposure to bloodborne pathogens (if cutting skin), chemical hazards (dyes, disinfectants), and ergonomic injuries. Requires hazard communication training, SDS access, and exposure control plans if applicable.
Barber shops are subject to 29 CFR 1910.1030. Requires written exposure control plan, universal precautions, PPE, training, and hepatitis B vaccination offer.
Barber shops are public accommodations under ADA Title III. Must provide accessible facilities (e.g., entrances, restrooms, seating) and services to people with disabilities. Applies regardless of size or number of employees.
Most barber shops are conditionally exempt small quantity generators (CESQG) under RCRA if generating <220 lbs/month of hazardous waste. Must identify waste and ensure proper disposal through licensed handlers. Not typically applicable to standard operations.
Barber shops must avoid deceptive advertising (e.g., false claims about services, prices, or qualifications). Must honor advertised prices and disclose material connections in endorsements. Applies to online and print ads.
Requires payment of federal minimum wage ($7.25/hour) and overtime (1.5x regular rate for hours over 40/week). Tipped employees may be paid $2.13/hour if tips bring total to at least minimum wage. Applies to barbers and assistants.
All employers must verify identity and work authorization using Form I-9. Employers must retain forms for 3 years after hire or 1 year after employment ends, whichever is later.
Requires eligible employees (12 months, 1,250 hours) to be offered up to 12 weeks of unpaid, job-protected leave for qualifying medical or family reasons. Most small barber shop LLCs are exempt.
The FTC's 'Funeral Rule' is often misnamed; it also prohibits misrepresentation of hair removal services. Requires clear disclosure of prices and prohibits false claims about permanence or medical benefits of hair removal.
Barber shops using cosmetics (e.g., hair dyes, conditioners) must ensure products are safe and properly labeled. Devices like clippers are regulated as medical devices if marketed for medical use. No federal license required for standard barbering tools.
All Illinois LLCs must file an Annual Report with the Secretary of State. The report confirms the LLC's current information, including registered agent, principal office address, and management structure. Filing is required every year to maintain good standing.
Barber and cosmetology licenses in Illinois are renewed biennially. Renewal requires completion of continuing education (see below). The renewal window opens January 1 of the expiration year.
Barbers must complete 12 hours of approved continuing education every two years, including 2 hours in infection control. Cosmetologists must complete 24 hours, including 2 hours in infection control and 2 hours in safety and sanitation. Courses must be IDFPR-approved.
Chicago imposes a 3% Amusement Tax on 'admission charges' to places of amusement. While barbershops are generally not considered amusement, some services involving entertainment components may be scrutinized. Most standard barber services are exempt. Confirm with City of Chicago. Registration via Clerk's Office.
All retail or service businesses in Chicago must obtain a Business Tax License. Barber shops fall under 'Service Businesses' category. Must register with the City Clerk and renew annually. Applies regardless of state-level structure.
Not a business tax per se, but businesses owning tangible personal property (e.g., chairs, mirrors, equipment) may be assessed. Most small barbershops leasing space may not owe, but owners of equipment may be subject. Applies only to businesses in Cook County outside Chicago if unincorporated, or within municipalities that assess.
Illinois does not impose a general state-level occupational privilege tax. Local jurisdictions (e.g., municipalities) may have their own. See city-specific requirements.
Many Illinois cities (e.g., Naperville, Aurora, Springfield) require a local business license or privilege tax. Fees and requirements vary. Must be renewed annually. Check with city clerk. Example: Naperville requires Business Tax Registration for all service businesses.
Specific to cosmetology/barber shops; requires proof of state cosmetology license. Effective fees as of 2024.
Chicago businesses exempt; applies county-wide outside city limits.
Barber/cosmetology classified as "personal service" use; home occupation restrictions apply.
Barber/cosmetology allowed if compliant with zoning; no employees permitted.
Plumbing permits required for shampoo bowls/sinks.
Must comply with zoning district sign regulations (e.g., max size 1.5 sq ft per foot of frontage).
Barber shops classified as Business (B) occupancy; requires annual inspection.
Verifies compliance with building, fire, zoning codes.
Required for all commercial alarms connected to monitoring service.
No food handling, but plumbing for shampoo bowls requires approval. Chicago has separate inspections.
Barber shops rarely need permit unless music/events; enforced via complaint.
Waivers possible in downtown districts; no separate "traffic impact permit.
Required under the Illinois Workers' Compensation Act (820 ILCS 305/1 et seq.). Applies to all employers with at least one employee, including part-time and minor employees. Sole proprietors and partners may elect out but are generally not exempt unless formally excluded. Coverage must be obtained from a licensed insurer or through self-insurance (rare for small businesses).
Each licensed barber or cosmetologist must display their current license certificate in a conspicuous location at the place of business. The establishment must also display the current facility license.
While not mandated by state law, many municipalities and landlords require proof of general liability insurance for business licensing or leasing. Strongly recommended for protection against third-party bodily injury or property damage claims. Regulated by the Illinois Department of Insurance (DOI), but no statutory mandate exists for barbershops.
Not mandated by the Illinois Department of Financial and Professional Regulation (IDFPR) or any state agency. However, it is strongly recommended for barbers and cosmetologists to cover claims of negligence, infection, or allergic reactions. Some private certification programs or landlords may require it, but it is not a legal requirement.
A $10,000 surety bond is required for Cosmetology Establishments under 225 ILCS 115/10. This is a license bond to ensure compliance with state cosmetology laws. The bond protects clients from fraud, misrepresentation, or unprofessional conduct. Required for all cosmetology businesses, including barbershops. Bond must be issued by a surety company licensed in Illinois.
All barber shops and cosmetology establishments must post the official Consumer Rights Poster provided by IDFPR in a visible location. Available for download from the IDFPR website.
An LLC with employees must have an EIN and file quarterly Form 941 (Employer's Quarterly Federal Tax Return) and annual Form 940 (Federal Unemployment Tax Act).
Employers must file Form IL-941 (Illinois Withholding Tax Return) quarterly and remit withheld state income taxes. Registration with IDOR is required.
Barber shops must collect and remit sales tax on taxable services and retail products (e.g., hair products). The filing frequency is determined by IDOR based on sales volume. Initial registration is required via MyTax Illinois.
Most municipalities require annual fire safety inspections for commercial establishments. In Chicago, barber shops must pass inspection and obtain a Certificate of Occupancy. Contact local fire department for specific requirements.
Some local health departments inspect barber shops for sanitation, sterilization, and compliance with infection control standards. Requirements vary by county or city. For example, Cook County conducts periodic inspections.
Federal and state agencies require retention of business records. IRS recommends keeping employment tax records for at least 4 years. Illinois requires LLC records (e.g., articles, bylaws, meeting minutes) be kept for at least 3 years. Salon records (client logs, sterilization logs) should be kept for 2 years per IDFPR guidelines.
Employers must display the 'Employee Rights' poster (FLSA), 'EEO', 'Family and Medical Leave Act', and 'Illinois Minimum Wage' poster. Available for free download from DOL and IDOL websites.
Employers must file Form UI 5/40 (Contribution and Wage Report) quarterly and pay unemployment insurance taxes. Registration with IDES is required.
Illinois imposes a Franchise Tax and Replacement Tax on LLCs. The tax is based on paid-in capital. Most LLCs file Form IL-8767 annually. This is separate from federal income tax.
LLCs taxed as sole proprietorships or partnerships may require owners to make quarterly estimated tax payments if they expect to owe $1,000 or more in federal tax. S-Corps may have different requirements.
If the LLC owner expects to owe $1,500 or more in Illinois income tax, quarterly estimated payments using Form IL-1040-ES are required.
While there isn't a specific federal *license* for barbering or cosmetology, several federal regulations apply to your business, including ADA compliance and FTC advertising rules; these are not licenses but required standards of operation.
ADA compliance costs can vary significantly, ranging from $200.00 to $5000.00, depending on the necessary modifications to your Aurora, IL business to ensure accessibility for individuals with disabilities.
The Federal Trade Commission (FTC) regulates advertising and consumer protection, ensuring truth in advertising and fair business practices; fees associated with FTC compliance vary depending on the specifics of your business.
No, obtaining an Employer Identification Number (EIN) from the IRS is free of charge; it's a requirement if you plan to hire employees or operate as a corporation or partnership.
If you operate as an LLC, you have federal income and self-employment tax obligations to the IRS, which can be complex; the associated fees vary, but can be substantial.
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